Welfare advocates have told a Senate inquiry that a proposed 25 per cent tax on gas exports could lower domestic energy prices while generating billions to support low-income households.
Wed 22 Apr 2026 01.00 AEST
Photo: ACOSS CEO Cassandra Goldie (AAP Image/Mick Tsikas)
Welfare advocates have told a Senate inquiry that a proposed 25 per cent tax on gas exports could lower domestic energy prices while generating billions to support low-income households.
Appearing at the inquiry’s first public hearing in Canberra, representatives from the Australian Council of Social Service (ACOSS) rejected industry claims that an export levy would drive up prices, arguing the opposite effect was more likely.
ACOSS’ Climate and Energy program director Kellie Court and senior economist Peter Davidson said modelling suggests a flat tax on exports would increase local supply, reducing reliance on volatile international spot markets.
“ACOSS has been doing a lot of work around how we can permanently reduce energy bills, especially of low-income households,” said Ms Court.
“We’re talking about people in social housing, private rentals, low-income homeowners by helping them improve their home energy upgrades, so things like insulation, access to solar, batteries [and] other thermal efficiency.”
“We know that that can reduce bills permanently, up to $1,300 a year. This isn’t a one-off rebate or a sugar hit. This is permanent reductions that will help people.”
The evidence adds to growing support for the levy, which was first proposed by the Australian Council of Trade Unions (ACTU).
Australia Institute analysis has found it could raise up to $17 billion in revenue each year.
Ms Court said that money could “certainly go towards supporting the acceleration of renewable energy in this country, and in particular, helping households.”
She said it would not only ease cost-of-living pressures but help households better withstand the impacts of climate change.
“It will also make them more resilient to climate change, in particular heat waves. And of course, it will help reduce emissions.”
In a statement, ACOSS CEO Dr Cassandra Goldie said Australia’s tax take remains well below comparable nations.
“Australia’s public revenue is about $100 billion per year below the OECD average, with 27 of the 38 OECD countries collecting more tax than what we do,” she said.
“We are also the fifth lowest in the OECD for public spending. We clearly have the capacity to raise more money and invest it where it’s needed.”
More than 50 community organisations, including ACOSS, Foodbank Australia and People with Disability, have signed a joint statement calling for the levy’s introduction and an overhaul of capital gains tax and negative gearing.
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